Seattle Center Robert Nellams, Director (206) 684-7200 http://www.seattlecenter.com/ Department Overview Seattle Center is home to cultural and educational organizations, sports teams, festivals, community programs (including cultural and community celebrations), and entertainment facilities. Millions of people visit the 74-acre Seattle Center campus annually. Consistently rated as one of the City's top attractions, Seattle Center is a premier urban park whose mission is to delight and inspire the human spirit, and to bring people together as a rich and varied community. The history of Seattle Center dates back to a time well before it existed as a City department in its current form. Prior to the 1850's, the land on which Seattle Center sits was a part of a Native American trail which was later homesteaded by the David Denny family and eventually donated to the City of Seattle. In 1927, the new Civic Auditorium, now Marion Oliver McCaw Hall, and Arena were constructed with funding from a levy and a contribution from a local business owner. In 1939, a large military Armory was constructed. In 1948, the Memorial Stadium was built and the Memorial Wall was added in 1952. Finally, in 1962, the community pulled together these facilities and added new structures to host the Seattle World's Fair/Century 21 Exposition. At the conclusion of the fair, the City took ownership of most of the remaining facilities and campus grounds to create Seattle Center. Since its creation in 1963, Seattle Center has nurtured artistry and creativity by providing a home for and technical assistance to a wide variety of arts and cultural organizations. These tenants play a critical role in the arts and cultural landscape of the region. Seattle Center is financed by a combination of tax dollars from the City's General Fund and revenue earned from commercial operations. Major sources of commercial revenues include facility rentals, parking fees, long-term leases to non-profit organizations, sponsorships, food sales and monorail fares. Due to its heavy reliance on commercial revenues, Seattle Center confronts many of the same market factors that other businesses do. Changing consumer preferences, fluctuating demand and the many options customers have in terms of discretionary spending all influence the financial performance of Seattle Center. But Seattle Center's situation is also unique in that it must meet the simultaneous financial challenges of competition with other facilities that host events; the presence on campus of long-term, non-profit tenants; and the need to balance its public and private event offerings. City of Seattle - 2015 Adopted and 2016 Endorsed Budget - 125 -
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Seattle Center · City of Seattle - 2015 Adopted and 2016 Endorsed Budget - 126 - Seattle Center Budget Overview Seattle Center is emerging from a period of budgetary retrenchment
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Seattle Center
Robert Nellams, Director
(206) 684-7200
http://www.seattlecenter.com/
Department Overview
Seattle Center is home to cultural and educational organizations, sports teams, festivals, community programs (including cultural and community celebrations), and entertainment facilities. Millions of people visit the 74-acre Seattle Center campus annually. Consistently rated as one of the City's top attractions, Seattle Center is a premier urban park whose mission is to delight and inspire the human spirit, and to bring people together as a rich and varied community.
The history of Seattle Center dates back to a time well before it existed as a City department in its current form. Prior to the 1850's, the land on which Seattle Center sits was a part of a Native American trail which was later homesteaded by the David Denny family and eventually donated to the City of Seattle. In 1927, the new Civic Auditorium, now Marion Oliver McCaw Hall, and Arena were constructed with funding from a levy and a contribution from a local business owner. In 1939, a large military Armory was constructed. In 1948, the Memorial Stadium was built and the Memorial Wall was added in 1952. Finally, in 1962, the community pulled together these facilities and added new structures to host the Seattle World's Fair/Century 21 Exposition. At the conclusion of the fair, the City took ownership of most of the remaining facilities and campus grounds to create Seattle Center. Since its creation in 1963, Seattle Center has nurtured artistry and creativity by providing a home for and technical assistance to a wide variety of arts and cultural organizations. These tenants play a critical role in the arts and cultural landscape of the region.
Seattle Center is financed by a combination of tax dollars from the City's General Fund and revenue earned from commercial operations. Major sources of commercial revenues include facility rentals, parking fees, long-term leases to non-profit organizations, sponsorships, food sales and monorail fares.
Due to its heavy reliance on commercial revenues, Seattle Center confronts many of the same market factors that other businesses do. Changing consumer preferences, fluctuating demand and the many options customers have in terms of discretionary spending all influence the financial performance of Seattle Center. But Seattle Center's situation is also unique in that it must meet the simultaneous financial challenges of competition with other facilities that host events; the presence on campus of long-term, non-profit tenants; and the need to balance its public and private event offerings.
City of Seattle - 2015 Adopted and 2016 Endorsed Budget - 125 -
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
City of Seattle - 2015 Adopted and 2016 Endorsed Budget - 126 -
Seattle Center
Budget Overview
Seattle Center is emerging from a period of budgetary retrenchment that began in the Great Recession and was exacerbated by the loss of the Seattle SuperSonics in 2008. In recent years, its focus has been on efficiencies in an attempt to align its operational costs with revenues. However, the local economy continues to improve, and Center has seen revenue increases in a number of areas including KeyArena.
KeyArena event bookings, and the profitability of those bookings, have been increasing since 2010. The venue is also hosting a broader range of events. In 2013 revenue to Seattle Center from Key Arena was about $8.1 million, 22% of total department revenues and up 24% from 2012. Revenues have also been strong in 2014, and Seattle Center is now able add staff to support the increase in booking.
Other areas at Seattle Center continue to thrive. McCaw Hall continues to have consistent event bookings and attendance. Its primary users, the Pacific Northwest Ballet and the Seattle Opera, continue to draw large audiences for their productions. The Armory (which was substantially remodeled in 2011-2012) is now fully leased with food vendors and has seen a significant increase in customers.
The 2015 Proposed Budget maintains funding for all other programs at Seattle Center, allowing visitors to continue to have access to a vast array of events and performances.
City Council Changes to the Proposed Budget
The Council approved a one-time reduction of 0.6% in General Fund support to the department's 2015 Proposed Budget. This change was made only to departments receiving more than $10 million in General Fund support.
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Citywide Adjustments for Standard Cost Changes $ 453,583 0.00 $ 496,620 0.00 Adjustment for One-time Adds or Reductions -$ 116,600 -3.40 -$ 116,600 -3.40
Proposed Changes
KeyArena Staffing Needs $ 595,062 0.00 $ 830,353 0.00 Restore Support Positions at KeyArena $ 106,921 1.50 $ 106,922 1.50 Convert Contract Position to Permanent -$ 13,459 1.00 -$ 14,401 1.00 Convert Intermittent Staff Hours to Permanent $ 6,761 0.87 $ 6,773 0.87 Allow Service Contract to Expire -$ 34,038 0.50 -$ 104,051 0.50 Paid Sick and Safe Leave $ 35,000 0.00 $ 40,000 0.00 Playground Maintenance $ 48,972 0.00 $ 47,824 0.00
Proposed Technical Changes
Citywide Training and Travel Reallocation -$ 2,505 0.00 -$ 2,505 0.00 Final Citywide Adjustments for Standard Cost Changes -$ 47,123 0.00 $ 337,558 0.00
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Descriptions of Incremental Budget Changes
Baseline Changes
Citywide Adjustments for Standard Cost Changes - $453,583 Citywide technical adjustments made in the "Baseline Phase" reflect changes due to inflation, central cost allocations, retirement, healthcare, workers' compensation and unemployment costs. These adjustments reflect initial assumptions about these costs and inflators early in the budget process. Adjustment for One-time Adds or Reductions - ($116,600)/(3.40) FTE This item includes budget reductions for one-time additions in the 2014 Adopted Budget, including funding of $50,000 for the Vera Project and funding of $87,600 for McCaw Hall reserves. It also includes the restoration of funding for a one-time budget reduction taken in 2014, which stemmed from $21,000 in cost savings from the three-month shutdown of the International Fountain due to maintenance. Finally, it includes the abrogation of 3.4 FTE of vacant, unfunded positions. The latter change is made to better reflect Seattle Center's actual operational needs.
Proposed Changes
KeyArena Staffing Needs - $595,062 This change gives Seattle Center increased appropriation authority for the compensation of staff, commensurate with its forecasted event load at KeyArena in 2015 and 2016. KeyArena hosts concerts, professional (Seattle Storm) and amateur (Seattle University men's basketball, Rat City Rollergirls) sporting events, private corporate meetings and special events. This add largely funds an increase in intermittent staff that staffs these events. Staffing events with intermittent workers gives Seattle Center the flexibility to respond to fluctuating demand or the need for specialized skills. Restore Support Positions at KeyArena - $106,921/1.50 FTE This change restores two cuts that were made in 2011 to positions at KeyArena. The venue has had no dedicated administrative support since a full-time position was cut that year, and this change restores that position. This change also restores a half-time event service representative position to the full-time level. To clients, event service representatives are the public face of Seattle Center, and they serve as the operational and technical liaisons with production managers after event contracts have been signed. Both of these changes are due to KeyArena's increased number of events since 2011, a trend Seattle Center forecasts to continue in 2015 and 2016. Convert Contract Position to Permanent - ($13,459)/1.00 FTE Seattle Center Community Programs presents free and affordable events that feature art, entertainment, culture and enrichment. For the past seven years, the development, management, artistic contracting and organizational relationships for many core programs have been fulfilled by a contractor. Because the body of work is stable and ongoing, Seattle Center believes that the work would be more appropriately performed by a City employee. This change converts the contractor into a 1.0 FTE arts program specialist. Convert Intermittent Staff Hours to Permanent - $6,761/.87 FTE This change converts 0.78 FTE of intermittent staff hours into an 0.87 FTE permanent administrative specialist in the Armory's Customer Service Center.
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Seattle Center
Allow Service Contract to Expire - ($34,038)/.50 FTE Effective July 2015, Seattle Center's management agreement will expire with Levy Restaurants, a contractor that it engaged in 2011 to recruit new vendors to the Armory Food Court and manage food-court operations. Levy has recruited new vendors to all available spaces in the food court, and Seattle Center will not renew the contract. When the Levy contract lapses in June 2015, Seattle Center will restore to full time a manager 2 position that was reduced to half time in the 2013 Adopted Budget. Savings from the foregone contract expense are $75,000 in 2015 and $150,000 in 2016, and the expense of the position restoration is $39,000 per year, for a net savings of $34,000 in 2015 and $109,000 in 2016. Paid Sick and Safe Leave - $35,000 Seattle's Paid Sick and Safe Time (PSST) ordinance went into effect on September 1, 2012. This ordinance establishes a system of accrual and policies around the use of paid leave from work that employees, including intermittent employees, may take when they or a family member need to be absent from work due to illness or a critical safety issue. Due to its large pool of intermittent employees, Seattle Center has faced increased labor costs since the City implemented PSST, since it must ensure adequate coverage for event support. This change provides for funding for these costs. Playground Maintenance - $48,972 This change funds maintenance of the Children At Play playground which will be completed in early 2015. This cost is supported by revenues from Center Art, LLC which operates Chihuly Garden and Glass.
Proposed Technical Changes
Citywide Training and Travel Reallocation - ($2,505) This adjustment makes small reductions to training and travel budget appropriations Citywide. The Budget reallocates these funds to a new Centralized Management and Leadership Development program in the Department of Human Resources. More information on the new training program can be found in the Department of Human Resources budget section. Final Citywide Adjustments for Standard Cost Changes - ($47,123) Citywide technical adjustments made in the "Proposed Phase" reflect changes due to inflation, central cost allocation, retirement, healthcare, workers' compensation, and unemployment costs. These adjustments reflect updates to preliminary cost assumptions established in the "Baseline Phase."
Council Changes
One-time Appropriation Reduction - ($73,979) This Council item reflects a one-time across-the-board reduction in appropriations for all departments receiving more than $10 million in General Fund support. This reduction is equivalent to 0.6% of the General Fund appropriation included in the 2015 Proposed Budget.
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City Council Provisos
There are no Council provisos.
Expenditure Overview
Appropriations
Summit Code
2013 Actual
2014 Adopted
2015 Adopted
2016 Endorsed
Access Budget Control Level SC670 1,204,396 1,104,117 1,137,505 1,146,770
Administration-SC Budget Control Level
SC690 6,879,488 7,105,079 7,434,984 7,511,957
Campus Grounds Budget Control Level
SC600 11,672,036 11,875,465 12,173,173 12,337,402
Commercial Events Budget Control Level
SC640 888,538 928,531 988,854 1,025,729
Community Programs Budget Control Level
SC620 2,049,967 2,093,466 2,140,349 2,171,378
Cultural Facilities Budget Control Level
SC630 205,492 224,737 232,529 234,987
Debt Budget Control Level SC680 134,850 126,450 126,050 126,450
Festivals Budget Control Level SC610 1,456,650 1,480,366 1,342,795 1,357,377
Judgment and Claims Budget Control Level
SC710 588,290 702,856 0 0
KeyArena Budget Control Level
SC660 6,500,131 6,528,475 7,439,541 7,692,926
McCaw Hall Budget Control Level
SC650 4,471,602 4,154,550 4,266,907 4,347,609
Department Total 36,051,440 36,324,092 37,282,687 37,952,585
Department Full-time Equivalents Total* 241.62 240.66 241.13 241.13
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
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Total KeyArena 8,120,652 7,382,521 8,260,613 9,064,463 441960 McCaw Hall Reimbursables 1,516,009 1,406,111 1,563,677 1,636,976 462400 McCaw Hall Rent 357,017 420,155 397,588 413,358 462500 McCaw Hall Tenant Use Fees 1,287,863 1,288,271 1,344,118 1,351,226
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Seattle Center 462800 McCaw Hall Catering &
Concessions 284,425 270,000 271,450 285,023
462800 McCaw Hall Miscellaneous 200,469 166,585 173,269 211,896 587001 General Fund - McCaw Hall 557,950 573,759 571,509 571,509
Total McCaw Hall 4,203,733 4,124,881 4,321,611 4,469,988
Total Revenues 37,457,030 36,547,642 38,033,993 39,416,071
379100 Use of (Contribution To) Fund
Balance -1,405,590 -223,550 -751,306 -1,463,486
Total Use of Fund Balance -1,405,590 -223,550 -751,306 -1,463,486
Total Resources 36,051,440 36,324,092 37,282,687 37,952,585
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Seattle Center
Appropriations By Budget Control Level (BCL) and Program
Access Budget Control Level The purpose of the Access Budget Control Level is to provide the services needed to assist visitors in coming to and traveling from the campus, while reducing congestion in adjoining neighborhoods. Program services include operating parking services, maintaining parking garages, managing the Seattle Center Monorail, and encouraging use of alternate modes of transportation.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Access 1,204,396 1,104,117 1,137,505 1,146,770 Total 1,204,396 1,104,117 1,137,505 1,146,770
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
Administration-SC Budget Control Level The purpose of the Administration-SC Budget Control Level is to provide the financial, human resource, technology, and business support necessary to provide effective delivery of the Department's services.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Administration-SC 6,879,488 7,105,079 7,434,984 7,511,957 Total 6,879,488 7,105,079 7,434,984 7,511,957
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
Campus Grounds Budget Control Level The purpose of the Campus Grounds Budget Control Level is to provide gathering spaces and open-air venues in the City's urban core. Program services include landscape maintenance, security patrols and lighting, litter and garbage removal, recycling operations, hard surface and site amenities maintenance, management of revenues associated with leasing spaces, and food service operations at the Armory.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
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Seattle Center
Commercial Events Budget Control Level The purpose of the Commercial Events Budget Control Level is to provide the spaces and services needed to accommodate and produce a wide variety of commercial events, both for profit and not for profit, and sponsored and produced by private and community promoters.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
Community Programs Budget Control Level The purpose of the Community Programs Budget Control Level is to produce free and affordable programs that connect diverse cultures, create learning opportunities, honor community traditions, and nurture artistry, creativity, and engagement.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Community Programs 2,049,967 2,093,466 2,140,349 2,171,378 Total 2,049,967 2,093,466 2,140,349 2,171,378
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
Cultural Facilities Budget Control Level The purpose of the Cultural Facilities Budget Control Level is to provide spaces for performing arts and cultural organizations to exhibit, perform, entertain, and create learning opportunities for diverse local, national, and international audience.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Cultural Facilities 205,492 224,737 232,529 234,987 Total 205,492 224,737 232,529 234,987
Full-time Equivalents Total* 3.26 3.26 3.26 3.26
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
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Seattle Center
Debt Budget Control Level The purpose of the Debt Budget Control Level is to provide payments and collect associated revenues related to the debt service for McCaw Hall.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Debt 134,850 126,450 126,050 126,450 Total 134,850 126,450 126,050 126,450
Festivals Budget Control Level The purpose of the Festivals Budget Control Level is to provide a place for the community to hold major festival celebrations.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Festivals 1,456,650 1,480,366 1,342,795 1,357,377 Total 1,456,650 1,480,366 1,342,795 1,357,377
Full-time Equivalents Total* 8.72 8.72 8.72 8.72
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
Judgment and Claims Budget Control Level The purpose of the Judgment/Claims Budget Control Level is to pay for judgments, settlements, claims, and other eligible expenses associated with legal claims and suits against the City.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
Judgment and Claims 588,290 702,856 0 0 Total 588,290 702,856 0 0
KeyArena Budget Control Level The purpose of the KeyArena Budget Control Level is to manage and operate the KeyArena. Included in this category are all operations related to sports teams playing in the arena, along with concerts, family shows, and private meetings.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
KeyArena 6,500,131 6,528,475 7,439,541 7,692,926 Total 6,500,131 6,528,475 7,439,541 7,692,926
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
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Seattle Center
McCaw Hall Budget Control Level The McCaw Hall Budget Control Level includes funds for the operation and maintenance of the McCaw Hall. In cooperation with Seattle Opera and Pacific Northwest Ballet, Seattle Center manages and operates McCaw Hall as the home of the Opera and Ballet. The Seattle International Film Festival also holds its annual festival and many other film screenings in this facility.
2013
2014
2015
2016
Program Expenditures Actual Adopted Adopted Endorsed
McCaw Hall 4,471,602 4,154,550 4,266,907 4,347,609 Total 4,471,602 4,154,550 4,266,907 4,347,609
* FTE totals are provided for information purposes only. Changes in FTEs resulting from City Council or Human Resources Director actions outside of the budget process may not be detailed here.
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Seattle Center
Seattle Center Fund Table
Seattle Center Fund (11410) 2013
Actuals 2014 Adopted
2014 Revised
2015 Adopted
2016 Endorsed
Beginning Fund Balance 594,979 197,379 2,253,829 2,200,872 2,952,178
Ending Fund Balance 2,253,829 420,929 2,200,872 2,952,178 4,415,664
McCaw Hall Reserve 1,277,000 917,000 1,277,000 1,189,000 1,189,000
Other Reserves 310,000
Planning Reserve 427,641 1,409,500
Total Reserves 1,277,000 1,227,000 1,277,000 1,616,641 2,598,500
Ending Unreserved Fund Balance 976,829 -806,071 923,872 1,335,537 1,817,164
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Seattle Center
Capital Improvement Program Highlights
Seattle Center's 2015-2020 Capital Improvement Program (CIP) is at the heart of Seattle Center's vision to be the premier urban park. Seattle Center's CIP repairs, renovates, and redevelops the facilities and grounds of Seattle Center's 74-acre campus to provide a safe and welcoming place for millions of visitors and 5,000 events each year. In 2015, Seattle Center continues implementation of the Seattle Center Century 21 Master Plan. Adopted by the City Council in 2008, the Century 21 Master Plan will guide development of the Seattle Center campus over the next 20 years. The 2015-2020 CIP includes funding for continued renovation of the Armory, including mechanical systems, restrooms, and meeting rooms. Funding is also included for asset-preservation investments in Seattle Center's other two large public-assembly facilities, KeyArena and McCaw Hall, as well as for campus open space and the Seattle Center Monorail.
The costs of managing Seattle Center's CIP, including project management and administration, are presented in Seattle Center's operating budget. These costs are offset by revenues to the Seattle Center Fund from the funding sources of the CIP projects. Funding for Seattle Center's 2015-2020 Adopted CIP comes primarily from the Cumulative Reserve Subfund, property sale proceeds, federal grant funds, and private sources.
More information and background on Seattle Center's CIP can be found in the 2015-2020 Adopted CIP online here: 2015-2020 Adopted CIP.